Volvo closes cab production in UmeŚ, Sweden as it shift production

Thursday, 17 October 2013
The Volvo Group announced that it has made a directional decision to
implement changes in the European industrial structure for truck
manufacturing.
At least 500 jobs from UmeŚ in cab production department will be moving
to Gothenburg. IF Metall, the worker’s union at Volvo in UmeŚ writes in
a statement that its decision is "a deathblow to industrial jobs in
UmeŚ, northern Sweden." Some 900 employees, including 700 in Sweden,
will be affected by the decisions. Volvo
Volvo says that the aim is to enhance the efficiency of manufacturing
and thus strengthen competitiveness. The intention is to, step-wise
over the next two years, relocate cab trim operations from UmeŚ to
Gothenburg, to concentrate the assembly of heavy duty trucks in
Gothenburg to one line, and to concentrate the assembly of medium duty
trucks to Blainville.

The directional decision is expected to result in staff cutbacks and
operational changes. The action corresponds to a minor part of the
financial impact of the previously announced Group-wide efficiency
program.

“Today’s European industrial structure for truck manufacturing is
partly the result of acquisitions and we now intend to use the various
plants in an optimal way”, says Olof Persson, Volvo’s President and
CEO. “This will generate more efficient truck manufacturing operations,
which will improve our potential to compete successfully in global
markets”.

The factory in UmeŚ specialized simultaneously in metal stamping,
welding and painting cabins, according to a press release.
By Scancomark.com Team

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